David M. Rubenstein, Co-Chief Executive Officer of Carlyle, said, “Every component of the Carlyle engine is running strong. Third quarter fundraising was solid, our investment pace was active, portfolio valuations were up and we generated substantial cash returns for our fund investors. These returns drove robust distributable earnings for the third quarter. Additionally, this quarter we raised $3.4 billion in fresh capital, reflective of strong investor confidence in our global model and investment performance.”

William E. Conway, Jr., Co-Chief Executive Officer of Carlyle, said, “Our purpose is to invest wisely and create value for our fund investors, which in turn benefits our public investors, and we worked hard at each this quarter. Our active third quarter is a culmination of several factors, including the scope of our global operation, various tactical advantages we had, strong capital markets and many months and years of work. We believe that the United States, Europe and emerging markets – from Brazil to Turkey to China – are great places to invest right now.”

U.S. GAAP results for Q3 2012 included income before provision for income taxes of $603 million and net income attributable to the public unitholders through The Carlyle Group L.P. of $19 million, or net income per common unit of $0.40 on a fully diluted basis. For Q3 2011, Carlyle was still a private partnership, and the net loss before provision for income taxes was $(619) million. For Q3 2012, total revenue was $859 million, compared with revenue of $(60) million in Q3 2011. Total balance sheet assets were $30.0 billion as of September 30, 2012 compared with $24.7 billion as of December 31, 2011.

Third Quarter Distribution

The Board of Directors has declared a quarterly distribution of $0.16 per common unit to holders of record at the close of business on November 19, 2012, payable on November 30, 2012. Since the pricing of its IPO on May 2, 2012, Carlyle has announced $0.27 per common unit in distributions to public unitholders.

Carlyle intends to distribute $0.16 per full quarter to common unitholders for each of the first three quarters of the calendar year, and to announce a year-end catch-up distribution in its fourth quarter earnings release. As noted in Carlyle’s Registration Statement on Form S-1, Carlyle intends to make the year-end catch-up distribution in an amount that, taken together with the other quarterly distributions, represents substantially all of its Distributable Earnings in excess of the amount determined by the General Partner to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and its funds or to comply with applicable law or any of its financing agreements. Carlyle anticipates that the aggregate amount of its distributions for most years will be less than its total Distributable Earnings for that year. The declaration and payment of any distribution is at the sole discretion of the General Partner, which may change the distribution policy at any time.

The Carlyle Engine

Carlyle evaluates the performance of its business on four key metrics, known as the Carlyle engine (funds raised, equity invested, fund valuations and realized proceeds for fund investors). The table below highlights the results of those metrics for Q3 2012, as well as on a year-to-date (YTD) and last twelve months (LTM) basis.

Funds Raised

Equity Invested

Q3

$3.4 billion

Q3

$1.6 billion

YTD: $9.4 bn

LTM: $10.8 bn

YTD: $4.6 bn

LTM: $7.5 bn

Realized Proceeds

Carry Fund Returns

Q3

$5.1 billion

Q3

3%

YTD: $11.9 bn

LTM: $15.1 bn

YTD: 11%

LTM: 18%

Note: Equity Invested and Realized Proceeds reflect carry funds only.

During Q3 2012, Carlyle generated net realized proceeds of $5.1 billion from 117 different investments across 34 carry funds in its portfolio. Carlyle deployed $1.6 billion of equity in Q3 2012 in 86 new or follow on investments across 24 carry funds. In addition, Carlyle has committed to invest more than $4.0 billion in equity across 10 transactions that were announced in Q3 2012 and are expected to close in upcoming quarters.

Segment

Realized Proceeds

Equity Invested

# ofInvestments

# of Funds

$ mn

# ofInvestments

# of Funds

$ mn

Q3

Corporate Private Equity

33

16

$3,707

17

11

$863

Global Market Strategies

34

6

$81

7

4

$237

Real Assets

53

12

$1,319

64

9

$544

Carlyle

117

34

$5,107

86

24

$1,644

YTD

Corporate Private Equity

71

20

$7,405

37

14

$1,798

Global Market Strategies

50

6

$543

19

5

$471

Real Assets

88

13

$3,994

111

10

$2,311

Carlyle

203

39

$11,942

164

29

$4,580

Note: The columns may not sum as some investments cross segment lines, but are only counted one time for Carlyle results.

Carlyle All Segment Results for Third Quarter 2012

Distributable Earnings (DE): $206 million

Pre-tax Distributable Earnings of $206 million equated to $0.63 per common unit on a post-tax basis. Distributable Earnings increased 79% from Q2 2012 primarily due to period-over-period changes in our realized net performance fees. On an LTM basis, Distributable Earnings are $748 million compared to $752 million over the prior 12-month period.

Fee-Related Earnings of $46 million increased 28% from Q2 2012 due to declines in operating expenses. On an LTM basis, Fee-Related Earnings declined 14% compared to the prior 12-month period.

Realized Net Performance Fees of $156 million increased 106% from Q2 2012. For the current quarter, our revenues were positively impacted by public equity exits in China Pacific Life, Kinder Morgan, Dunkin Brands, and SS&C, as well as multiple private company sales. On an LTM basis, realized net performance fees are $591 million, up 7% from the prior 12-month period.

Realized Investment Income of $5 million increased slightly from Q2 2012.

Economic Net Income (ENI): $219 million

Economic Net Income of $219 million in Q3 2012 compared to an Economic Net Loss of ($57) million in Q2 2012. On an after-tax basis, Carlyle generated $0.66 in ENI per unit. On an LTM basis, ENI decreased 34% compared to the prior 12-month period due to significant portfolio appreciation over the period following the financial crisis.

Increases versus year-end 2011 were primarily due to fundraising, portfolio appreciation, increases in Global Market Strategies due to CLO creation, new carry funds, and acquisitions. The increases across Carlyle were offset by significant levels of distributions to fund investors.

Remaining fair value of capital in the ground in investments made in 2008 or earlier: 51%.

AUM in-carry ratio as of the end of Q3 2012: 68%.

Please see accompanying multimedia.

Non-GAAP Operating Results

Carlyle’s non-GAAP results for Q3 2012 are provided in the table below:

$ in millions, except unit and per unit amounts

Economic Net income

Q3 2012

Economic Net Income (pre-tax)

$

218.5

Less: Provision for income taxes (1)

14.9

Economic Net Income, After Taxes

$

203.6

Fully diluted units (in millions)

307.7

Economic Net Income, After Taxes per Adjusted Unit

$

0.66

Distributable Earnings

Distributable Earnings

$

206.3

Less: Estimated foreign, state, and local taxes (2)

10.6

Distributable Earnings, After Taxes

$

195.7

Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P.

Distributable Earnings to The Carlyle Group L.P.

$

27.8

Less: Estimated current corporate income taxes (3)

0.7

Distributable Earnings to The Carlyle Group L.P. net of corporate income taxes

$

27.1

Units in public float (in millions)

43.2

Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding

$

0.63

(1) Represents the implied provision for income taxes that was calculated using a similar methodology applied in calculating the tax provision for The Carlyle Group L.P., without any reduction for noncontrolling interests.

(2) Represents the implied provision for current income taxes that was calculated using a similar methodology applied in calculating the current tax provision for The Carlyle Group L.P., without any reduction for noncontrolling interests.

Fee Related Earnings of $19 million increased 88% from Q2 2012 due to higher fee revenue and lower operating expenses.

Realized Net Performance Fees of $126 million increased $76 million from Q2 2012 as realizations in CPE funds were robust in Q3 2012.

Realized Investment Income of ($0.2) million compared to $1.5 million in Q2 2012.

Economic Net Income (ENI): $177 million

Economic Net Income of $177 million was up from a loss of ($65) million in Q2 2012.

CPE carry funds valuations increased 5% in Q3 2012, and 12% year-to-date, which drove positive Economic Net Income in the CPE segment, compared to a portfolio value decline of 2% and 6%, respectively, in Q2 2012 and Q3 2011.

Net Performance Fees of $159 million compared to a loss of ($80) million in Q2 2012, driven by an increase in CPE carry fund valuations in Q3 2012 versus a decrease in Q2 2012.

Assets Under Management (AUM): $53.2 billion

Total AUM increased 1% versus Q2 2012 while Fee-Earning AUM of $36.9 billion was relatively flat versus $37.1 billion at the end of Q2 2012.

Funds Raised of $2.0 billion was driven by the second closing of Carlyle Partners VI, as well as closings in our U.S. mid-market buyout fund and various coinvestments. Year-to-date, funds raised of $4.8 billion compares to $1.3 billion for the same period in 2011.

Hedge Fund net inflows continued to be strong, with $379 million in Q3 2012 and $1.7 billion in year-to-date net subscriptions, resulting in total hedge fund AUM of $9.8 billion.

Raised a third new Collateralized Loan Obligation (CLO) in 2012 with $615 million in assets.

GMS Carry Fund AUM ended the quarter at $3.5 billion.

Total Structured Credit AUM ended the quarter at $16.9 billion.

On October 1, 2012, Carlyle acquired a 55% ownership position in Vermillion Asset Management, a commodities focused investment manager with $2.2 billion in AUM as of September 30, 2012, which will be reflected in Carlyle’s Q4 2012 results and AUM.

Global Markets Strategies

Period

LTM

% Change

$ in millions, except AUM where noted

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q11 - 3Q12

QoQ

YoY

YTD

Economic Net Income

34

22

38

32

36

128

13%

5%

(24%)

Net Performance Fees

11

3

18

4

8

33

86%

(23%)

(56%)

Realized Net Performance Fees

7

67

15

1

1

83

17%

(90%)

(68%)

Distributable Earnings

32

90

31

23

28

173

18%

(15%)

(20%)

Total Assets Under Management ($ in billions)

23.0

24.5

28.3

29.0

30.1

4%

31%

Fee-Earning Assets Under Management ($ in billions)

21.4

23.2

26.8

27.7

28.5

3%

33%

Funds Raised, excluding hedge funds ($ in billions)

0.8

0.0

0.7

0.8

0.8

2.3

4%

6%

Hedge Fund Net Inflows ($ in billions)

0.5

0.8

0.7

0.7

0.4

2.6

(41%)

(23%)

Note: Totals may not sum due to rounding. Funds Raised excludes the impact of acquisitions.

The increase in fee-earning AUM in Q3 2012 is attributable to the initiation of fees on several 2012 mandates that made their first investment during the quarter and began charging fees on total investor commitments.

Fund of Funds Solutions

Period

LTM

% Change

$ in millions, except where noted

3Q2011

4Q2011

1Q2012

2Q2012

3Q2012

4Q11 - 3Q12

QoQ

YoY

YTD

Economic Net Income

7

6

9

4

4

23

(8%)

(49%)

N.A.

Net Performance Fees

(1)

1

4

1

1

6

(54%)

200%

N.A.

Realized Net Performance Fees

4

3

0

0

0

4

200%

(92%)

N.A.

Distributable Earnings

12

9

6

3

3

21

21%

(71%)

N.A.

Total Assets Under Management ($ in billions)

44.2

40.7

45.4

44.6

44.6

(0%)

1%

N.A.

Fee-Earning Assets Under Management ($ in billions)

30.2

27.7

29.5

27.6

30.2

9%

(0%)

N.A.

Note: Carlyle acquired a 60% ownership interest in AlpInvest on July 1, 2011. Totals may not sum due to rounding.

Balance Sheet Highlights

The amounts presented below exclude the effect of U.S. GAAP consolidation eliminations on investments and accrued performance fees as well as cash and debt associated with Carlyle’s consolidated funds. All data is as of September 30, 2012.

Net Accrued Performance Fees attributable to unitholders of $1,189 million. These performance fees are comprised of Gross Accrued Performance Fees of $2,155 million less $86 million in accrued giveback obligation and $880 million in accrued performance fee compensation and non-controlling interest.

Loans payable of $500 million.

Carlyle has an undrawn $750 million revolving credit line.

Conference Call

Carlyle will host a conference call on November 8, 2012 at 8:00 a.m. EST to discuss Q3 2012 results and industry trends. Immediately following the prepared remarks, there will be a Question and Answer session for analysts and investors.

Analysts and institutional investors may listen to the call by dialing +1-800-850-2903 (international +1-253-237-1169) and mentioning “The Carlyle Group third quarter 2012 Results Conference Call”. The conference call will be webcast simultaneously to the public through a link on the investor relations section of The Carlyle Group web site at ir.carlyle.com. An archived replay of the webcast also will be available shortly after the live event.

About The Carlyle Group

The Carlyle Group is a global alternative asset manager with $157 billion of assets under management in 101 active funds and 63 fund of funds vehicles as of September 30, 2012. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,300 people in 32 offices across six continents. www.carlyle.com

Forward Looking Statements

This press release may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. These statements are subject to risks, uncertainties and assumptions, including those described under the section entitled “Risk Factors” in our prospectus dated May 2, 2012, filed with the SEC pursuant to Rule 424(b) of the Securities Act on May 4, 2012, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.This release does not constitute an offer for any Carlyle fund.

The Carlyle Group L.P.GAAP Statement of Operations (Unaudited)

Three Months Ended

Nine Months Ended

Sept 30,2012

Sept 30,2011

Sept 30,2012

Sept 30,2011

(Dollars in millions, except unit and per unit data)

Revenues

Fund management fees

$

239.8

$

236.0

$

714.1

$

683.2

Performance fees

Realized

291.4

375.2

688.7

870.1

Unrealized

64.9

(859.1

)

88.0

(133.6

)

Total performance fees

356.3

(483.9

)

776.7

736.5

Investment income (loss)

Realized

9.8

7.5

11.4

50.3

Unrealized

0.4

(12.9

)

27.3

6.3

Total investment income (loss)

10.2

(5.4

)

38.7

56.6

Interest and other income

4.5

2.5

9.9

15.6

Interest and other income of Consolidated Funds

247.7

191.2

678.4

521.6

Total revenues

858.5

(59.6

)

2,217.8

2,013.5

Expenses

Compensation and benefits

Base compensation

177.0

101.9

433.0

277.2

Equity-based compensation

53.2

-

147.4

-

Performance fee related

Realized

121.9

51.4

188.3

136.2

Unrealized

41.5

(139.5

)

(1.4

)

(81.7

)

Total compensation and benefits

393.6

13.8

767.3

331.7

General, administrative and other expenses

92.9

80.4

268.1

224.7

Interest

4.0

15.7

20.6

48.5

Interest and other expenses of Consolidated Funds

204.1

99.1

568.1

290.0

Other non-operating expenses

10.3

9.4

6.9

30.0

Total expenses

704.9

218.4

1,631.0

924.9

Other income (loss)

Net investment gains (losses) of Consolidated Funds

448.9

(341.2

)

1,707.6

(618.2

)

Income (Loss) before provision for income taxes

602.5

(619.2

)

2,294.4

470.4

Provision for income taxes

5.5

12.9

27.8

25.7

Net income (loss)

597.0

(632.1

)

2,266.6

444.7

Net income (loss) attributable to non-controlling interests in consolidated entities

485.4

(282.3

)

1,708.2

(473.4

)

Net income (loss) attributable to Carlyle Holdings

111.6

$

(349.8

)

558.4

$

918.1

Net income attributable to non-controlling interests in Carlyle Holdings

93.0

550.1

Net income attributable to The Carlyle Group L.P.

$

18.6

$

8.3

Net income attributable to The Carlyle Group L.P. per common unit

Basic

$

0.43

$

0.20

Diluted (1)

$

0.40

$

0.15

Weighted-average common units

Basic

43,235,336

42,097,973

Diluted

46,939,751

255,300,460

(1) - Included in net income attributable to The Carlyle Group L.P. per common unit on a fully diluted basis is incremental net income from the assumed exchange of Carlyle Holdings partnership units of $31.1 million for the nine months ended September 30, 2012.

Total Segment Information (Unaudited)

The following table sets forth information in the format used by management when making resource deployment decisions and in assessing the performance of our segments. The information below is the aggregate results of our four segments.

(2) Represents capital called by our carry funds and fund of funds vehicles, net of fund fees and expenses. Equity Invested amounts may vary from Capital Called due to timing differences between investment acquisition and capital call dates.

(3) Represents distributions from our carry funds and fund of funds vehicles, net of amounts recycled. Distributions are based on when proceeds are actually distributed to investors, which may differ from when they are realized.

(4) Represents the net result of subscriptions to and redemptions from our hedge funds and open-end structured credit funds.

(6) Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.

(7) The fair market values for AlpInvest primary fund investments and secondary investment funds are based on the latest available valuations of the underlying limited partnership interests (in most cases as of June 30, 2012) as provided by their general partners, plus the net cash flows since the latest valuation, up to September 30, 2012.

(2) Outflows represent limited partner distributions from our carry funds and fund of funds vehicles and changes in basis for our carry funds and fund of funds vehicles where the investment period has expired.

(3) Represents the net result of subscriptions to and redemptions from our hedge funds and open-end structured credit funds.

(4) Market Appreciation/(Depreciation) represents changes in the net asset value of our hedge funds and of our fund of funds vehicles based on the lower of cost or fair value.

(5) Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.

(6) Carlyle/Riverstone Global Energy and Power, L.P., Carlyle/Riverstone Global Energy and Power II, L.P. Carlyle/Riverstone Global Energy and Power III, L.P., Riverstone/Carlyle Global Energy and Power IV, L.P., Carlyle/Riverstone Renewable Energy Infrastructure, L.P. and Riverstone/Carlyle Renewable Energy Infrastructure II, L.P. (collectively, the “Energy Funds”), are managed with Riverstone Holdings LLC and its affiliates. Affiliates of both Carlyle and Riverstone act as investment advisers to each of the Energy Funds. With the exception of Riverstone/Carlyle Global Energy and Power IV, L.P. and Riverstone/Carlyle Renewable Energy Infrastructure II, L.P., where Carlyle has a minority representation on the funds’ management committees, management of each of the Energy Funds is vested in committees with equal representation by Carlyle and Riverstone, and the consent of representatives of both Carlyle and Riverstone are required for investment decisions. As of September 30, 2012, the Energy Funds had, in the aggregate, approximately $15 billion in AUM and $9 billion in fee-earning AUM, respectively.

Corporate Private Equity and Real Assets Fund Performance (Unaudited)

The fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group L.P. and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle Group L.P. is not an investment in any of our funds. There can be no assurance that any of our existing or future funds will achieve similar returns.

(1) The data presented herein that provides "inception to date" performance results of our segments relates to the period following the formation of the first fund within each segment. For our Corporate Private Equity segment our first fund was formed in 1990. For our Real Assets segment our first fund was formed in 1997. For our Global Market Strategies segment, CSP II was formed in 2007.

(2) Represents the original cost of all capital called for investments since inception of the fund.

(5)An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total amount of proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when considered together with the other investment performance metrics presented, provides investors with meaningful information regarding our investment performance by removing the impact of investments where significant realization activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of investment performance, and should not be considered in isolation. Such limitations include the fact that these measures do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other companies that use similarly titled measures. We do not present Realized/Partially Realized performance information separately for funds that are still in the investment period because of the relatively insignificant level of realizations for funds of this type. However, to the extent such funds have had realizations, they are included in the Realized/Partially Realized performance information presented for Total Corporate Private Equity and Total Real Assets.

(6) Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested.

(7) Gross Internal Rate of Return ("IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest.

(8) Net Internal Rate of Return ("IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest.

(15) Represents the original cost of investments net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC.

(16) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments originated by the AlpInvest team. Excluded from the performance information shown are a) investments that were not originated by AlpInvest and b) Direct Investments, which was spun off from AlpInvest in 2005. As of September 30, 2012, these excluded investments represent $0.7 billion of AUM.

(17) Fully Committed funds are past the expiration date of the commitment period as defined in the respective limited partnership agreement.

(18) To exclude the impact of FX, all foreign currency cash flows have been converted to Euro at the reporting period spot rate.

(19) Aggregate includes Main Fund I - Co-Investments, Main Fund I - Mezzanine Investments, AlpInvest CleanTech Funds and funds which are not included as part of a main fund.

(20) Represents the U.S. dollar equivalent balance translated at the spot rate as of period end.

Reconciliation for Economic Net Income and Distributable Earnings (Unaudited)

Three Months Ended

September 30,2012

September 30,2011

(Dollars in millions)

Income (loss) before provision for income taxes

$

602.5

$

(619.2

)

Adjustments:

Partner compensation

-

111.6

Equity-based compensation issued in conjunction with the IPO

52.6

-

Acquisition related charges and amortization of intangibles

43.4

22.6

Other non-operating expenses

10.3

9.4

Net income attributable to non-controlling interests in consolidated entities

(485.4

)

282.3

Provision for income taxes attributable to non-controlling interests in consolidated entities

(4.0

)

-

Severance and lease terminations

0.9

2.0

Other adjustments

(1.8

)

-

Economic Net Income (Loss)

$

218.5

$

(191.3

)

Net performance fees

164.6

(223.3

)

Investment income (loss)

8.4

(4.6

)

Fee Related Earnings

$

45.5

$

36.6

Realized performance fees, net of related compensation

156.2

194.2

Investment income - realized

4.6

13.0

Distributable Earnings

$

206.3

$

243.8

Reconciliation for Economic Net income and Distributable Earnings, cont(Unaudited)

For the ThreeMonths Ended

September 30,2012

(Dollars in millions, except unit and per unit amounts)

Economic Net Income

$

218.5

Less: Provision for Income Taxes

14.9

Economic Net Income, After Taxes

$

203.6

Economic Net Income, After Taxes per Adjusted Unit (1)

$

0.66

Distributable Earnings

$

206.3

Less: Estimated foreign, state, and local taxes

10.6

Distributable Earnings, After Taxes

$

195.7

Distributable Earnings to The Carlyle Group L.P.

$

27.8

Less: Estimated current corporate income taxes

0.7

Distributable Earnings to The Carlyle Group L.P. net of corporate income taxes

$

27.1

Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding (2)

$

0.63

(1) Adjusted Units were determined as follows:

The Carlyle Group L.P. common units outstanding

43,221,452

Carlyle Holdings partnership units held by the existing owners

260,773,995

Dilutive effect of unvested deferred restricted common units

2,267,863

Contingently issuable Carlyle Holdings partnership units

1,436,552

Total Adjusted Units

307,699,862

(2) As of September 30, 2012, there are 43,221,452 outstanding common units of The Carlyle Group L.P.

The Carlyle Group L.P.GAAP for 12-Month Rolling Summary (Unaudited)

Twelve Months Ended

Sept. 30,2012

Sept. 30,2011

(Dollars in millions)

Revenues

Fund management fees

$

946.4

$

887.3

Performance fees

Realized

1,126.0

1,044.1

Unrealized

35.8

861.2

Total performance fees

1,161.8

1,905.3

Investment income

Realized

26.2

63.0

Unrealized

34.3

22.9

Total investment income

60.5

85.9

Interest and other income

10.1

21.3

Interest and other income of Consolidated Funds

870.8

655.8

Total revenues

3,049.6

3,555.6

Expenses

Compensation and benefits

Base compensation

530.3

320.9

Equity-based compensation

147.4

-

Performance fee related

Realized

277.8

182.9

Unrealized

(42.0

)

(5.0

)

Total compensation and benefits

913.5

498.8

General, administrative and other expenses

366.9

296.5

Interest

32.7

52.8

Interest and other expenses of Consolidated Funds

731.2

360.5

Other non-operating expenses

8.9

30.0

Loss from early extinguishment of debt, net of related expenses

-

2.5

Equity issued for affiliate debt financing

-

214.0

Total expenses

2,053.2

1,455.1

Other income (loss)

Net investment income (losses) of Consolidated Funds

2,002.5

(1,037.3

)

Gain on business acquisition

7.9

-

Income before provision for income taxes

3,006.8

1,063.2

Provision for income taxes

30.6

31.5

Net income

2,976.2

1,031.7

Net income (loss) attributable to non-controlling interests in consolidated entities

1,979.0

(840.9

)

Net income attributable to Carlyle Holdings

997.2

$

1,872.6

Net income attributable to non-controlling interests in Carlyle Holdings

988.9

Net income attributable to The Carlyle Group L.P.

$

8.3

Reconciliation of Non-GAAP to GAAP for 12-Month Rolling Summary (Unaudited)

Twelve Months Ended

Sept. 30,2012

Sept. 30,2011

(Dollars in millions)

Income before provision for income taxes

$

3,006.8

$

1,063.2

Adjustments:

Partner compensation

(479.1

)

(1,003.6

)

Equity-based compensation issued in conjunction with IPO

146.2

-

Acquisition related charges and amortization of intangibles

123.4

66.6

Gain on business acquisition

(7.9

)

-

Other non-operating expenses

8.9

30.0

Losses associated with early extinguishment of debt

-

2.5

Equity issued for affiliate debt financing

-

214.0

Net income attributable to non-controlling interests in consolidated entities

(1,979.0

)

840.9

Provision for income taxes attributable to non-controlling interests in consolidated entities